433369666-The-Case-for-Investing-in-South-Africa

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ELECTRICAL MACHINERY AND EQUIPMENT INDUSTRY
• The electrical machinery sub-sector contributed 1.5% to South Africa’s total manufacturing GDP in 2018. It is
segmented into the manufacturing of equipment and components for electricity distribution, which accounts
for the bulk of activity in the sector; components for the automotive sector; and the production of lighting
equipment.
• Its key products include wires; electrical motors; generators; transformers; distribution equipment; components
for the automotive sector (e.g. harnesses, ignition wire sets); lighting equipment and electrical insulators,
including light bulbs, fittings and illuminated signs.
• The sub-sector is dominated by two players, namely the Altron Group and the Actom Group, which are
integrated across entire supply chains through various operating entities.
Top electrical machinery and equipment exports, 2018
Source: IDC analysis, compiled using South African Revenue Service data
ELECTRICAL MACHINERY AND EQUIPMENT:
INVESTMENT OPPORTUNITIES
ZAR
million
% of total SA
merchandise
exports
Insulated wire and cable, optical fibre cable 2 567 0.21%
Electrical switches, connectors, etc, for < 1kV 1 604 0.13%
Electric transformers,static converters & rectifiers 1 366 0.11%
Electrical power, etc, control & distribution boards 1 331 0.11%
Electrical machinery and apparatus 994 0.08%
Electric motors and generators, except generating sets 924 0.07%
Lamps and lighting fittings, illuminated signs, etc 883 0.07%
0ther 4 826 0.39%
Total top electrical machinery and equipment exports 14 495 1.16%
• There are significant opportunities for the manufacturing of automotive components as well as lighting
equipment where the two dominant players do not have a major presence.
• Import replacement opportunities include the production of electric generating sets and rotary converters;
parts for electric motors and generators; lamps and light fittings; and, among others, electrical switches and
connectors.